In Relation to the Direct Write-Off Method of Accounting for Bad

question 64

Multiple Choice

In relation to the direct write-off method of accounting for bad debts, it is not true that:

• A) bad debts are charged as an expense at the time an account is determined to be uncollectable.
• B) the entry to write off bad debts is debit bad debts expense, debit GST collected, credit accounts receivable.
• C) there is no contra asset account for estimated doubtful debts.
• D) bad debts expense is recorded in the same period in which its related sales revenue is included as income.

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Definitions:

Syndesmosis

A type of fibrous joint in which bones are joined together by long collagen fibers, allowing for limited movement.

Cartilaginous Joint

A type of joint in the body where the bones are joined together by cartilage, allowing for limited movement.

Cartilaginous Joints

Joints where the bones are attached by cartilage, allowing more limited movement than a synovial joint.

Cartilage

A flexible connective tissue found in various parts of the body including the joints, rib cage, and ear, providing support and cushioning.